Nasscom, in collaboration with Zinnov, unveiled its latest report titled ‘Road to Recovery – Indian Tech Start-up Landscape 2024’. Released on the sidelines of the Startup Mahakumbh, the report offers an in-depth analysis of the current state of India’s tech start-up ecosystem, highlighting key trends and data points that reflect a steady path to recovery and renewed growth momentum.
The Indian tech startup ecosystem demonstrated resilient progress in CY2024, reflecting a year of measured recovery characterized by selective investor participation, steady funding momentum, and sustained entrepreneurial activity.
In CY2024, the Indian tech startup ecosystem witnessed a 23% surge in funding, with total tech funding rising to $7.4 billion. The number of deals also saw a 27% uptick compared to CY2023. This revival was further underscored by a 2.1X increase in newly founded tech startups during the year, bringing the total number of Indian tech startups to an estimated 32,000–35,000.
Mirroring global trends, investors tread cautiously, with VC investment theses now prioritizing sustainable performance and strong fundamentals over aggressive capital deployment. In terms of funding by stages, seed stage exhibited highest growth of 29% (in terms of total funding share), followed by early-stage with 25%, and late-stage with 21% in CY2024 compared to CY2023.
About 67% of tech startup funding in CY2024 was focused on ‘matured’ sectors that are characterized by a high aggregate funding value and deal share. Amongst all ‘matured’ sectors Retail Tech, and Health Tech emerged as frontrunners exceeding their 5-year performance averages. Nascent sectors including Aviation, Maritime and Defense, and Environment Tech displayed continuous momentum in deal activity, reflecting growing investor interest in emerging technology domains.
India added the 2nd highest number of unicorns at six as compared to top global tech start-up ecosystems in 2024, taking the combined valuation of current Indian unicorns to $220 Bn+. Unicorns’ share in total funding in CY2024 stood at 33%The confidence of startups in public market fundraising strengthened substantially in 2024, with tech IPOs witnessing a three-fold increase compared to 2023, making it a record year for Indian tech startups.
DeepTech investments attain growth sustenance
DeepTech funding in CY2024 grew by 78%, reaching $1.6 billion. Compared to CY2023, the number of deals in DeepTech startups increased by 24% in CY 2024. Median deal sizes in DeepTech startups outgrew tech startups in CY2024 for all the funding stages. Late-stage DeepTech startups saw the highest growth of 2.7X in median deal sizes as compared to CY 2023.
In terms of funding stages, seed and early-stage DeepTech startups collectively secured over 35% of the total tech startup funding—up 9 percentage points from the previous year, at these stages. Meanwhile, late-stage DeepTech startups accounted for 12% of the overall tech startup funding within the segment. The sector’s growth was primarily driven by AI-led startups, which contributed 87% of total DeepTech funding in CY2024.
Speaking on the report, Rajesh Nambiar, President, Nasscom, said, “The growth across mature and emerging sectors, specifically in DeepTech and AI, outlines the Indian tech startup ecosystem’s growing maturity, evolving
from being just a hub of opportunities to becoming a strategic force driving India’s digital economy. DeepTech startups play an increasingly crucial role in shaping India’s innovation landscape. Our focus now must be on strengthening the foundational pillars of this growth, from enhancing capital access to building robust innovation infrastructure, ensuring our startups can compete globally while solving uniquely Indian challenges.”
Pari Natarajan, CEO, Zinnov added, “The Indian entrepreneur’s story is one of hope, resilience, and an unshakable drive to change the world. At the heart of India’s growth, startups are fueling innovation and economic transformation. India’s tech startup ecosystem has entered a new phase of strategic resilience and scale, with a 2.1X surge in new startups, a record year for tech IPOs, and DeepTech funding soaring 78% to $1.6B—87% of which is AI-led. This surge in deep tech funding signals a new era—one where India is not just a consumer of cutting-edge technology but a creator, a leader, and an architect of innovation. The momentum we are witnessing today is an opportunity for the entire ecosystem—investors, academia, industry, and policymakers—to come together and accelerate India’s journey as a deep tech powerhouse.”
Tech start-up founders remain optimistic in their outlook (Nasscom Industry Pulse Survey)
Tech startups outperformed the projected outlook for 2024, with 88% of founders reporting revenue growth— significantly higher than the 67% anticipated in the 2023 survey. Sustainable growth emerged as the central investment theme for the year. Key drivers included shifts in business models and go-to-market strategies, strategic partnerships for expanded market access, and an increased focus on DeepTech investments. Nearly three-fourths of Indian tech startups remain optimistic on the funding outlook for 2025, while around 98% of respondents anticipate promising revenue increase in 2025.
